Problem:
Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 10%, and its common stock currently pays a $3.00 dividend per share (D0 = $3.00). The stock's price is currently $29.00; its dividend is expected to grow at a constant rate of 9% per year; its tax rate is 35%; and its WACC is 14.00%.
Requirement:
Question: What percentage of the company's capital structure consists of debt?
Note: Please show basic calculation